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Tech

Zynga Stock Tanks In After-Hours Trading

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Zynga

The Zynga logo is displayed on the front of the company’s former headquarters in San Francisco. (Justin Sullivan/Getty Images)

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SAN FRANCISCO (CBS/AP) – Online game maker Zynga is falling sharply in after-hours trading after the San Francisco company reported an unexpected loss in the second quarter.

After finishing up just over three percent at the end of trading Wednesday, after-hours trading has sent the stock plummeting nearly 40 percent.

Zynga Inc. reported adjusted earnings and revenue below Wall Street’s expectations Wednesday. The company said it lost $22.8 million, or 3 cents per share, in the April-June quarter. That’s down from earnings of $1.4 million a year ago when it was still privately held. Its per-share results last year were at breakeven.

Adjusted earnings were a penny per share, below expectations of 5 cents per share.

Zynga says revenue grew 19 percent to $332 million. Analysts surveyed by expected $342.8 million.

Zynga had a lot riding on this quarter. Investors had been punishing its stock because of worries about declining user numbers.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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